Silver Subject to 19% Taxation as of January 1st, 2014

silver-coins

In Germany, the Bundestag and the Bundesrat have decided to increase the VAT on silver coins and bullion. From January 1st onward, the tax on silver coins in Germany will jump from 7% to 19%. This new tax rate applies to silver bullion coins as well as collector coins. The change in the VAT rate for the silver coins found in the Act on the Implementation of the Mutual Assistance Directive and amending tax legislation ( Assistance Implementation Act , S. 44, § 12, paragraph 2). Silver is not mentioned directly, but rather the term “works of art and collectors ‘pieces’ is used – and this also closer to raising here (p. 44f.)

The German government depends on an EU directive, which specifies the harmonization of VAT rates. This is an attack upon the bullion markets and even in Switzerland silver coins are taxable as are bronze coins but not gold,